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3. Sir Cecil put before me his views on the changes that were desirable. The problem is, however, a large one and will require full consideration in Malaya before any definite proposals are made to His Majesty's Government. Without, therefore, committing myself in advance to approval of any particular measures, and still less committing my colleagues in the Government, I found myself in general sympathy with the objects which Sir Cecil had in mind. I have accordingly authorized him to discuss his proposals with the Rulers of the Malay States and to ascertain their views.

I have, &c.,

No. 6.

FEDERATED MALAY STATES.

PASSFIELD.

THE HIGH COMMISSIONER to THE SECRETARY OF STATE.

(Confidential.)

SIR,

(Received 28th September, 1931.)

[Answered by No. 7.]

Government House, Singapore, 1st September, 1931.

I HAVE the honour to forward three advance proof copies of the Proceedings of the Durbar of Rulers of the Federated Malay States held at Sri Menanti, Negri, Sembilan, on the 18th August last.* Final copies will be forwarded as soon as they have been struck off, but the proceedings are of such unusal importance that I hasten to transmit them in the only form that will be available before I leave Singapore to- morrow to open the new section of the Federated Malay States Railways between Pahang and Kelantan, and to pay a short visit of inspection to the coastal districts of Kelantan, Trengganu, and Pahang.

2. My opening address and the discussion arising there from, as also the para- graphs and appendices dealing with the proposed Malayan Postal and Railway Boards and Malayan customs union, are intimately connected with the policy of deceptra- lization in the Federated Malay States which was decided upon at the Conference at which I was present, and over which Lord Passfield presided at the Colonial Office on the 15th May last† It will be seen from the Proceedings that the policy has received the unanimous agreement of Their Highnesses the Rulers, and that their sanction for the publication of my address, together with a statement of their general approval of it, in the newspapers has enabled me to ascertain the attitude of the Malayan Press. I am glad to be able to report that this attitude has proved to be one of cautious approval and of sympathetic appreciation of the problems of detail and organization which are certain to emerge in the process of carrying the policy into effect. Nobody is more conscious than myself that difficulties will be encountered, and that reorganiza- tion must necessarily be slow and gradual, in order to be thorough and efficient Progress is, therefore, being directed along the following lines:—

(a) The British Residents are already in consultation with the Rulers in each State regarding the reconstitution of the State Councils; and there is reason to believe that these Councils will be transmuted into representative and efficient hodies by the end of the current year. (b) The acting Chief Secretary, the Legal Adviser, and the General Manager for Railways are working in co-operation upon a draft Railway Board Enactment, which it is hoped to introduce at the November session of Federal Council; they are also in correspondence with the General Adviser, Johore, regarding an agreement for the future operation of the Johore State Railway by this Board. The present lease of the Johore section to the Federated Malay State Railways expires next year.

(c) Similarly, the preparation of legislation for the inauguration of a Postal Board is receiv- ing the attention of the acting Chief Secretary, the Legal Adviser, and the Secretary for Postal Affairs. So far as the Straits Settlements and Federated Malay States are con- cerned, it is hoped that the Board will begin to operate from the beginning of next year, The accession of the Unfederated States will be invited by me in the course of conver- sation with their respective Rulers as opportunities arise; I desire to avoid any appearance of hurry in this matter.

(d) The formation of a customs union will depend upon the recommendations of a Committee which I have appointed to examine the proposal as it affects the Straits Settlements. The matter is so fraught with difficulties and complications that an early solution cannot be expected.

* Not reprinted.

+ No. 4

25

(e) Dr. C. J. Wilson, Principal Medical Officer, Federated Malay States, will be gazetted to act in addition as Principal Civil-Medical Officer in the Straite Settlements as from the 9th instant. The reorganization of the Medical Departments on a Malayan basis will, there- fore, begin shortly and I hope to place the Public Works Departments on a similar basis as from the 1st January, 1932.

The Unofficial members of the Federal Council were confidentially consulted by me regarding the policy, before I outlined it at the Durbar. Their reception of it was friendly and appreciative, and the inclusion of a number of them in the personnel of the reconstituted State Councils will enable them to take a constructive part in future developments.

I will keep you informed in future despatches of further progress in all these matters, but for the present activities must be confined to the preliminary work of shaping the broad foundations of the future system.

3. Paragraph 2 (iv) of the proceedings relates to the important proposal to form a separate department for drainage and irrigation. The reorganization of the Public Works Department (in which no place will be found for the present acting Director of Public Works, Federated Malay States, Mr. F. G. Finch, an officer of great ability and wide experience, who acted as Chief Hydraulic Engineer in 1925 and 1926) offers a unique opportunity for inaugurating this Department which I consider essential to the future progress of this country. I will, of course, address you separately and more fully on this matter: but, as a reference to the Rice Committee's Report* is made in Appendix D of the Proceedings, and because I find that no copies of it have yet been sent to your office, I attach a copy to this despatch. Please see paragraghs 63

seq.. of the Report.

4. The question of fees at the Kuala Kangsar College is a small one, but nevertheless has a bearing on the new policy of giving more power to the Ruler of each State in Council. The tradition of Malay royalty is to get everything for nothing at the expense of the commoner. Such a tradition is, of course, quite inconsonant with modern ideas and would militate, if persisted in, against a policy of retrocession of authority to Their Highnesses. I am therefore glad to be able to state that, since the Durbar, His Highness the Sultan of Selangor has called upon me to announce that, in private conclave among themselves, the four Rulers unanimously decided to adopt the enlightened views of the Sultan of Perak and to enforce the payment of school fees by royal parents whose circumstances enable them to defray such an obviously proper charge.

5. The other items in the Proceedings are self-explanatory, and refer to matters with which the local administrations are competent to deal. The only exception is paragraph 3 (iv) concerning the formation of a Malay Regiment. This is a subject to which I have recently alluded in my Secret despatch of the 26th August, concerning the replacement of the Burma Rifles. The proposal is still under discussion with the military authorities, and I will address you separately regarding it as soon as I am in a position to put forward definite recommendations.

I have, &c.,

C. 82395/31 [No. 16].

SIR,

No. 7.

C. CLEMENTI,

High Commissioner.

FEDERATED MALAY STATES.

THE SECRETARY OF STATE to THE HIGH COMMISSIONER. [Answered by Nos. 11 and 45.] (Confidential.)

Downing Street, 27th October, 1931.

I HAVE the honour to refer to your Confidential despatch of the 1st September, t transmitting advance proof copies of the Proceedings of the Durbar of Rulers of the Federated Malay States held at Sri Menanti, Negri Sembilan on the 18th of August.

2. I note the action you have taken in announcing in your opening Speech the policy you propose to pursue as regards devolution in the Federated Malay States and the lines on which further progress is intended to be made. The various separate

* Not reprinted.

† No. 6.

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